Fixing the Subscription Trap
The FTC’s Negative Option Rule do-over – and what’s at stake.
In June 2017, a federal judge preliminarily approved a settlement of a class-action lawsuit against Pennsylvania Gas & Electric alleging that the company engages in a “bait and switch trap.”
The July 2014 complaint alleges that the energy supplier promises consumers who switch to their energy supplier will pay competitive market-based rates and save on their electric bills when, according to plaintiffs, the company routinely increases customers’ rates to “well above the market” resulting in customers paying up to two to three times more for electricity.
According to the settlement terms, class members may receive a cash award based on the number of claims filed. A final fairness hearing is scheduled for October 26, 2017. For more information, go to https://www.paenergysettlement.com/. (Sobiech et al v. U.S. Gas & Electric, Inc. i/t/d/b/a Pennsylvania Gas & Electric et al, Case No. 14-cv-4464, E. D. PA.)
For more information about other class-action lawsuits against energy suppliers and TINA.org’s coverage of the companies, click here.
The FTC’s Negative Option Rule do-over – and what’s at stake.
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